Up to 20 billion barrels of crude oil has been discovered in Somalia. Turkey made the discovery after recent exploration activities carried out by the Turkish Petroleum Corporation, in partnership with Somali authorities.
Two of the three blocks being explored have already yielded commercially viable results, while the third is still undergoing evaluation, with expectations of positive outcomes by August 2025. This oil discovery follows a bilateral energy agreement signed in March 2024 between Turkey and Somalia.
The deal grants Turkey broad rights to explore and develop hydrocarbon resources in the East African nation. While Somali officials, including President Hassan Sheikh Mohamud, view the partnership as a landmark investment opportunity that could boost Somalia’s economy and energy independence, the agreement has faced criticism due to its highly favorable terms for Turkey.
READ: Nigeria-Morocco Gas Pipeline project to receive UAE finance backing
Under the terms of the deal, Turkish companies are allowed to recover up to 90% of annual oil and gas production as cost reimbursement, which is well above international standards. Furthermore, Turkey is exempted from paying typical upfront fees, such as signature bonuses or administrative charges. Somalia’s share is also limited, with a maximum royalty rate of just 5%, and the government has minimal control over revenues from exports, as Turkey is permitted to retain all profits abroad.
Another concerning element is the provision that allows Turkish entities to transfer exploration and production rights to third parties without needing Somali approval or maintaining a physical presence in the country. Critics argue that this level of autonomy may undermine Somalia’s ability to manage its own resources and limit future economic benefits. These conditions have sparked debate over whether the deal truly serves Somalia’s long-term interests.
Despite the controversy, President Mohamud has defended the partnership, emphasizing that Turkey was the first nation to demonstrate a concrete willingness to invest in Somalia’s untapped energy sector. He has called the agreement a step toward unlocking national resources that have remained dormant due to decades of instability and lack of infrastructure. With seismic surveys indicating that Somalia may possess up to 30 billion barrels of oil and significant gas reserves, officials hope this collaboration will open the door to long-term development and economic growth.
In conclusion, while the discovery of oil presents a massive opportunity for Somalia to join the ranks of oil-producing nations, the current agreement with Turkey raises serious concerns about fairness, transparency, and national benefit. For Somalia to fully capitalize on its resources, future negotiations may need to ensure more equitable revenue-sharing mechanisms and stronger regulatory safeguards.
